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The geopolitical and market bogeymen of the moment – Kim Jong Un, Vladimir Putin, tariffs, cyber warfare – are riding tall in the saddle.
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This weekend, I’d like to take a slightly nostalgic trip down Memory Lane, into the dark, swirling menacing pool that was the dawn of the Internet. OK, that sentence didn’t end up quite where I meant it to.

When I started my newsletter business in October of 2000, I decided to have a little fun with it on this new thing called the World Wide Web, aka “the internet.” If you, like me, are of a certain age, you remember well that we started every web address with the ubiquitous www.

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It has been 2 months since I last had a chance to respond to reader comments. This seems like a good time to pause and take the opportunity to do so again. Keep them coming!

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I really enjoy these exchanges. They get my creative analytical juices flowing, and force me to consider alternative viewpoints which I may not have done initially.

In fact, the more rebuttals I write, the kinder I feel! Which is why I’ve decided to report a special gold opportunity today (continuing our prickly theme with an investment that is the very definition of contrarian right now).

If indeed this inflation hysteria has passed, its peak was surely late January. Even the stock market liquidations that showed up at that time were classified under that narrative. The economy was so good, it was bad; the Fed would be forced by rapid economic acceleration to speed themselves up before that acceleration got out…

Gold Prices Today Are Starting 2018 on a Bullish Note; Here’s What’s Next

Gold prices today are pushing higher, extending December’s 5% rally into the new year. That’s not surprising for us, as we are predicting a gold bull market in 2018.

Gold rose above $1,300 on Dec. 28 for the first time since early October, and it had plenty of momentum on its side. That’s carried gold prices in 2018 even higher, as the yellow metal is up to $1,314.40 today.

Despite a volatile year for the price of gold, gold gained 12.67% in 2017. Add that to its 2016 gain of 6%, and we have what’s increasingly looking like a return to a secular bull market for gold.

And make no mistake, the $1,300 level is too important to overlook. If gold prices hold at this level, then the next target is $1,350.

Why Gold Prices Today Keep Running Higher

Though it was a shortened trading week for gold, it was about as steady and bullish as you could expect.

The precious metal traded on Dec. 26 with an upward bias that would carry it through the entire last week of 2017. The price of gold closed higher as the dollar weakened and ended the day at $1,283.

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On Wednesday, December 27, gold opened at that very same level. Weakness in the DXY came mostly before 8:00 a.m., when it dropped from an early morning high of 93.20 to 93. Gold peaked at $1,288 at 3:00 p.m. then retreated slightly to close at $1,287.

You can see how the DXY consistently dropped over the last week…

On Thursday, the dollar sold off in the morning. That took the DXY down from 92.72 at 8:00 a.m. to 92.64 by 5:00 p.m. Gold benefitted to the tune of $5 per ounce. It opened in New York at $1,290 and closed at $1,295.

And then, as if to end the year’s last trading day with a bang, gold buyers pushed the metal right through the $1,300 barrier. The yellow metal opened at $1,296 as the DXY had collapsed further to 92.27. At 12:45 p.m., the DXY tested 92.11, and that helped push gold to a 1:00 p.m. peak of $1,306. A reprieve for the DXY pulled it back to 92.3 by 5:00 p.m., but that was only enough to see gold back off to end the year at $1,303.

Now that gold prices have reached the $1,300 level at the end of 2017, here’s the next gold price target for 2018…

2018 Will Be a Bullish Year for Gold Prices

In order to appreciate the strength of gold’s latest rally, you only need to look at the metal’s run in candlestick format, and you’ll see just how relentless and one-directional it has been.

Have a look…

Notice that gold futures have only had a single down day since Dec. 12.

And if we look at the Gold Miners Bullish Percent Index (BPGDM), it has now moved from about 21.5 to 28.5, providing more ammunition for gold stock bulls.

Examining recent gold price action, we see gold’s rise is coming even though there’s been slightly lower than average volume.

That tells me this rally still has plenty of doubters sitting on the sidelines. And yet the 50-day moving average has just flattened after falling for six weeks, the 20-day moving average continues to trend upward, and momentum indicators are clearly on gold’s side.

We could see a bit of a breather in gold prices at any time, especially after such a persistent two-week rise. But seasonal tendencies are clearly in gold’s favor through late February.

You see, 2017’s gain of 12.67% is gold’s best annual performance since 2010, so momentum is on its side.

For these reasons, I see gold hitting $1,350 by late February. And if we get there, $1,400 starts to look a lot more “normal” in 2018, maybe even before mid-year arrives.

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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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